Car Buying Tips - An Insider's Guide

There are three main steps to buying a car – Financing, Research and the Dealership.

 

Step 1: Financing.

 

Before searching for a vehicle, know the amount you want to spend and get approved for an auto loan for that amount. There are several ways to get preapproved: 1) Apply with your financial institution. Banks usually base approval on your FICO score and have higher interest rates. Credit unions usually have better rates, friendlier service and most CUs base approvals on their internal score, which encompasses your FICO, debt ratio, delinquency rate and monthly income. 2) Most dealers have their own financing and usually base approval on your FICO score.

 

In addition, understand your payment parameters since you’re financing a monthly payment. Figure out what your budget allows on a monthly basis and be sure you’re willing to make that payment for at least 4 to 5 years.

 

If you decide to lease the vehicle, the monthly payments will be lower however after the lease term is over, you do not own the car and there is a residual (lump sum) to be paid or finance if you choose to buy the car. In addition, all leases have mileage stipulations and if you go over the mileage limit, you’ll have to pay a per mile penalty.

 

Step 2: Research.

 

Take the time to research the vehicles you have in mind. Factor in your “needs” and “wants”. Don’t assume your vehicle has a feature you need and/or want, check it out for yourself. To research the vehicle’s features, visit the manufacturer’s website. Also check out independent tests and rankings for the vehicle in mind. Well-known sites include Consumer Reports (www.consumerreports.org), Motor Trends (www.motortrend.com) and JD Powers (www.jdpower.com/cc/auto/index/jsp).

 

When researching, you want to know other factors that will affect the price of the car as well as your monthly payments.

• Additional accessories for the car - The more features you want on the vehicle, the higher the purchase price will be.
• Trade-ins - If you trade in your current vehicle with the same dealership you’re purchasing the car from, do not let them know until they have given you a price for the vehicle you’re purchasing. The dealer will try to lower the amount of your trade to make up for the “great” price they’re giving you on your new vehicle.
• New or pre-owned - With some makes, the resell value can be similar to a newer model. Compare prices with a new and used model when looking for a particular car.

 

Step 3: The Dealership.

 

To avoid headaches and the chance of being hassled into a car you don’t want, determine the exact vehicle you want before going to the dealer. This includes knowing the interior/exterior color as well as options and/or features you want. If you’re not willing to settle, don’t! Dealers are able to trade with other dealers for your specific car. Know the invoice price and MSRP, and which one you will be paying for. Dealers will add the salesperson’s commission into this price, so always compare prices with other dealers.

 

When you’re at the dealership, do not feel obligated to finance with the dealer. However, most dealers will still need to approve you with their finance company to ensure you can pay for the car just in case your financial institution decides not to. Some dealers will accept a preapproval letter from your financial institution to avoid preapproving you through their own finance company.

 

When you decide to purchase the car, check the fine print on the purchase order and do not sign unless you are 100% comfortable with the information. Also, get a due bill for outstanding items and do not sign the purchase order unless you’re willing to pay for outstanding debts on the vehicle.

 

For pre-owned vehicles, ask for a car fax report to check for any reported accidents on the vehicle. If the dealer is not willing to provide a car fax report, ask for the vehicle’s VIN (vehicle identification number) and purchase a carfax report at www.carfax.com.

 

Always remember, your biggest bargaining chip is that you can always walk away and start over with another dealer.

 

There is an easier way…

 

Auto Expert is a personal shopper from beginning to end, and everything in between. They will assist you in researching, financing and delivering the vehicle to you. They also deal directly with the management of the dealership, removing the salesperson’s commission.

 

In addition, Auto Expert works with a selection of dealerships throughout Southern California, so their inventory is endless. Another bonus, Auto Expert has separate trade-in vendors who bid on your trade. This allows for a fair appraisal without influencing the purchase price of your new vehicle.

For more information about our service, visit us online at http://www.autoexpertonline.com/ or call us toll free at 1-800-359-4567.

 

Other car choices comparable to recent Toyota model recalls

Recent recall news surrounding Toyota – Floor Mat Entrapment recall on 9 models last September, Accelerator Pedal recall on 11 models in January and Brake Issues for the 2010 Prius model in February – could cause consumers to be reluctant to purchase a Toyota until these issues are resolved. Hopefully, Toyota can rebuild their reputation (fast) and remain a top competitor for economical vehicles.
However, if you’re in the market to purchase a vehicle and were contemplating on buying a Toyota, don’t discount their competitors. Almost all automakers have cars in the same class. In this article, we’ll focus on the popular Toyota Camry and Corolla with similar models.

Camry competitors include:

Honda Accord
Nissan Altima
Ford Fusion
Chevy Malibu
Mazda 6

Corolla competitors include:

Honda Civic
Nissan Sentra
Ford Focus
Chevy Cobalt
Mazda 3

All of the models listed above offer similar features, options, and safety standards. The American competitors like Ford and Chevy have made marked improvements over the last few years and often offer cash rebates and great financing rates. In fact, the Ford Fusion won Motor Trend’s Car of the Year! And, the Ford Fusion hybrid is the most fuel-efficient full size sedan.

In addition, many automakers offer brake-override systems according to a recent Wall Street Journal article and these models include some of the ones listed above. Unfortunately, Toyota didn’t offer brake-override systems,

which is a system built into most of their cars that cuts off a car's acceleration if the driver is hitting both the gas and brake at the same time.  The computer system—known in the industry as "Smart Pedal" —tells the engine to disregard the accelerator if both the brake and gas pedal are pushed while the vehicle is moving.

Nissan Motor Co. and General Motor Co., including the four-cylinder Chevy Malibu, both offer the brake-override system.

Ford Motor Co. is employing the technology on its Fiesta subcompact car, which will be introduced in the U.S. later this year. Ford plans to roll the feature out to its other vehicles although a timetable hasn't been disclosed.

Toyota's Plan to Fix Accelerator Pedals on Recalled Vehicles

From the Toyota Newsroom, TORRANCE, Calif., February 1, 2010:

Toyota Motor Sales (TMS) U.S.A., Inc., today announced it will begin fixing accelerator pedals in recalled Toyota Division vehicles this week. Toyota’s engineers have developed and rigorously tested a solution that involves reinforcing the pedal assembly in a manner that eliminates the excess friction that has caused the pedals to stick in rare instances. In addition, Toyota has developed an effective solution for vehicles in production.

Parts to reinforce the pedals are already being shipped for use by dealers, and dealer training is under way. Many Toyota dealers will work extended hours to complete the recall campaign as quickly and conveniently as possible, some even staying open 24 hours a day. The company has also taken the unprecedented action of stopping production of affected vehicles for the week of February 1.

“Nothing is more important to us than the safety and reliability of the vehicles our customers drive,” said Jim Lentz, president and Chief Operating Officer, TMS. “We deeply regret the concern that our recalls have caused for our customers and we are doing everything we can – as fast as we can – to make things right. Stopping production is never an easy decision, but we are 100% confident it was the right decision. We know what’s causing the sticking accelerator pedals, and we know what we have to do to fix it. We also know it is most important to fix this problem in the cars on the road.”

Lentz added: “We are focused on making this recall as simple and trouble-free as possible, and will work day and night with our dealers to fix recalled vehicles quickly. We want to demonstrate that our commitment to safety is as high as ever and that our commitment to our customers is unwavering.”

On January 21, Toyota announced its intention to recall approximately 2.3 million select Toyota Division vehicles equipped with a specific pedal assembly and suspended sales of the eight models involved in the recall on January 26.

Toyota vehicles affected by the recall include:

• Certain 2009-2010 RAV4

• Certain 2009-2010 Corolla

• 2009-2010 Matrix

• 2005-2010 Avalon

• Certain 2007-2010 Camry

• Certain 2010 Highlander

• 2007-2010 Tundra

• 2008-2010 Sequoia


No Lexus Division or Scion vehicles are affected by these actions. Also not affected are Toyota Prius, Tacoma, Sienna, Venza, Solara, Yaris, 4Runner, FJ Cruiser, Land Cruiser, Highlander hybrids and certain Camry models, including Camry hybrids, all of which remain for sale.

Further, Camry, RAV4, Corolla and Highlander vehicles with Vehicle Identification Numbers (VIN) that begin with "J" are not affected by the accelerator pedal recall.

In the event that a driver experiences an accelerator pedal that sticks in a partial open throttle position or returns slowly to idle position, the vehicle can be controlled with firm and steady application of the brakes. The brakes should not be pumped repeatedly because it could deplete vacuum assist, requiring stronger brake pedal pressure. The vehicle should be driven to the nearest safe location, the engine shut off and a Toyota dealer contacted for assistance.

Detailed information and answers to questions about issues related to this recall are available to customers at www.toyota.com/recall and at the Toyota Customer Experience Center at 1-800-331-4331.